Market Overview

ForexLive Asia Wrap for Monday 07 Jan 2013: Looks Like the Yen Needs Some New News

The Yen had a relatively flat day today, which after the consistent losses all last week counts as a strong performance I suppose.

News/data/economic releases:

Japanese newspaper Yomiuri reported the size of the Fiscal 2012 Supplementary Budget would be in the order of ¥12 to 13Trillion. Prior market expectations were for an amount of around ¥10Trillion. (Bloomberg article)
Weekend reports of Australian banks to cut mortgage rates (by a tiny amount) led to speculation of less pressure on the RBA to ease
Some items from the Japanese weekend press
Japan December Monetary Base Avg Outstanding YOY +11.8% (vs. +5.0% for November)
UK December Lloyds TSB Consumer Barometer Job Prospects % Balance unchanged at -42 (also -42 in November)
Abe unlikely to attend Davos economic forum
And more "Yen weakness/fight deflation" talk from Abe (notable because the Yen seemed to not weaken on these comments today)
France: Hollande to spend extra 2 bln EUR for job creation
Global Regulators Agree to Loosen International Bank Liquidity Requirements

The EUR/USD, GBP/USD and AUD/USD all ticked a little higher in the early hours of the week but soon lost the ground they had covered as Tokyo liquidity arrived in the market. The USD went into early Europe with overall strength on the day.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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